Bank of Canada Boosts Prime Rate at 3%

Bank of Canada governor Mark Carney raised the overnight lending rate a 0.25% point on Wednesday morning.

CTV News reports:
The decision marks the third straight month that the central bank has boosted the rate, which was set at a rock-bottom 0.25 per cent during the recession.

The overnight lending rate affects short-term borrowing, such as variable-rate mortgages and some lines of credit.

The steady rise over the last few months suggests the Bank of Canada sees Canada’s economy rebounding and no longer feels interest rates need to be at virtually zero in order to stimulate recovery.

Well, considering that back in January 2007 the prime rate was at 6%, we are not doing so bad right now.